So you can get very remarkable investment results if you think more like a winning pari-mutuel player. Just think of it as a heavy odds against game full of craziness with an occasional mispriced something or other. And you’re probably not going to be smart enough to find thousands in a lifetime. And when you get a few, you really load up. It’s just that simple. –Charlie Munger
Dare to Be Great You have to weight your opportunities. Of course, how do you know when you have an exceptional opportunity? Experience and method. Joel Greenblatt was a master at position-sizing when he found low risk investments.
position_sizing (Academic paper)
Trembling with Greed http://www.fool.com/news/foth/2001/foth010213.htm
Trading Places (SELL!): http://youtu.be/1tmI867fAYU?t=1m55s Note the patience, patience and then ACT IMMEDIATELY IN SIZE.